Eurozone growth forecasts cut in ECB survey

Professional forecasters surveyed by the European Central Bank have slashed
their eurozone growth forecasts for this year and next, the ECB said.

AFP

11:28AM GMT 16 Feb 2012

According to the ECB's quarterly Survey of Professional Forecasters (SPF), the eurozone economy will contract by 0.1pc in 2012 and then grow 1.1pc in 2013, the central bank said in its February bulletin.

That marks a substantial downward revision from the last SPF survey in November when growth this year was seen at 0.8pc and next year at 1.6pc.

The latest forecasts also come in at the lower end of the ECB's own staff projections published in December.

The "more negative baseline outlook (was due) to additional fiscal consolidation in many euro area countries, a further tightening of credit conditions, lower confidence and a generally higher level of uncertainty," the ECB explained.

Eurostat data agency figures yesterday showed that the eurozone economy contracted by 0.3pc in the fourth quarter of last year.